Progress to Date

  • Original Loan Amount: $204,000.00
  • Balance at Beginning of 5-year Goal (1/1/08): $188,983.82 @ 6.00%
  • Balance at Refinance in February 2009: $148,000.00 @ 4.625%
  • Outstanding Balance: $0.00 (PAID IN FULL!!!)
  • Latest Payment Date: April 2011
  • Latest Additional Principal Amount: $17,623.22
  • Amount Ahead of Schedule (since refinance): $121,462
  • Time Ahead of Schedule (since refinance): 7 years 10 months
  • Interest Saved Last Month: $23,972.48
  • Total Interest Saved: $28,435.55 ($1,037.74 on original mortgage; $27,397.81 on current mortgage)
  • Months Remaining in 5-year Goal: 20
  • Average Monthly Principal Needed to Meet Goal: N/A (Goal achieved)
  • Progress List Explained

Wednesday, June 30, 2010

Monthly Summary: June 2010 (Halfway Complete)

The year 2010 is almost halfway over -- July 2 marks the halfway point -- and summer is in full bloom. I love this time of year.

According to the calendar, June 2010 also marks the halfway point of our five-year goal period. Thirty months are in the books, and thirty months are left to go. Fortunately for us, we've made sufficient progress in the first thirty months that our mortgage balance is now less than half its amount at the end of 2007 (when we dreamed up the project). In fact, the debt is over 52 percent lower, which means we are slightly ahead of schedule overall -- especially when considering that we had to pay proportionally larger interest amounts at the beginning of the project (and our current interest rate is lower than it was in 2008).

Another way to summarize our progress to date is that our mortgage is (at least) halfway dead.

My wife is not here to celebrate this milestone with me today. She's started her summer contract work and is away on a business trip. Because we'll have her extra income during the next few months, we were able to make a large prepayment of $5,000 in June. I like seeing the big reduction in the mortgage balance this month, but because of our relatively lower principal payments earlier in 2010 (March through May), we are still slightly behind my goal pace for this year. Hopefully we can make up the difference in the second half.

We made the 16th of 120 scheduled payments on our ten-year mortgage in June, and (as I mentioned earlier) the 30th payment since beginning the DTM project two and a half years ago.

At the start of June, our balance stood at $95,185.47; by adding the $5,000 additional principal amount to our required monthly payment, we reduced the balance to $89,641.99.

We realized $143.47 interest savings in June, bringing the total realized interest savings to date to $2,379.87.

The ten-year mortgage debt is $42,342 lower than it would have been if we never made any extra payments to principal. If we quit paying additional amounts after this month, we would still pay off the mortgage three years and two months ahead of schedule.

There are thirty months remaining in our sixty-month (five-year) goal period. We must pay an average of $2,988.07 each month to eliminate the debt within this time frame. Fortunately, the principal portion of our required payment amount is around $1,200 (and steadily rising), so we "only" have to come up with around $1,800 additional each month these days -- over $500 less per month than when we began the project. However...if we can continue to find that $500 and add it to our payments, we could potentially (dare I say it?) reach our goal even ahead of the five-year deadline. It's nice to imagine that happening...we just have to keep working toward making that a reality!

Wednesday, June 23, 2010

Summer Update

Happy Summer. I didn't get laid off from work this month, though I know some people who did.

If we pay off our mortgage according to plan, we will save ourselves around $8,500 more in interest than if we just started paying off the required monthly amount going forward. More motivation for us...

More to follow at month's end when I reconcile our standing at the halfway point of this project.